GST registration cancellation for non-filing of returns interfered with, and restoration allowed on payment of dues and filing of pending returns.

GST registration cancelled for non-filing of monthly returns under Section 29(2)(c) was interfered with where the Court found a prima facie case that the default was procedural and the authority had not adequately considered the representation. The Court held that denying any opportunity to file pending returns after payment could cause irreparable harm to the business and livelihood. To balance equities, the authority was directed to compute tax and penalties, if payable, and keep the portal active for payment. The registration was ordered to be restored from the date of registration, with liberty to file the pending returns regularly upon payment of dues, if any.

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Issues: Whether cancellation of GST registration for non-filing of returns should be interfered with and registration restored with permission to file returns on payment of dues.

Analysis: The registration was cancelled for failure to furnish monthly returns under Section 29(2)(c) of the Central Goods and Services Tax Act, 2017. The petitioner asserted that the default was procedural and that the authority had not adequately considered the detailed representation. The Court found a prima facie case for interference, noting that complete denial of an opportunity to file returns after payment would cause irreparable harm to the business and livelihood. To balance the equities, the authority was directed to compute the tax and penalties, if payable, and the portal was to remain active for making such payment.

Conclusion: The cancellation was interfered with and the registration was directed to be restored from the date of registration, with liberty to file the pending returns on regular basis upon payment of the dues, if any.

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